which of the following carries a direct relationship with the rate of growth of an economy ?
a) APC. b )MPC.
c) APS. d )MPS

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Solution

Dear Student,

Answer is (a) APC
(Because , Apc is equal to total consumption by total income. So economy growth can be measure by the consumption of the people.)

Regards.

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Similar questions

State whether the following are true or false. Give reasons:

(a) At zero level of income, savings are positive.

(b) The relationship between multiplier and MPC is inverse and that with MPS is direct.

(d) The value of MPS can be negative.

E_{c}

E_{c} = 0.0006 x^{2} + 0.003 x

x = 200.

Income	200	250	300	350	400
Saving	-	5	15	20	50

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